Industrial and warehousing demand in India’s top eight cities surged by 16% to 36.9 million square feet last year. Delhi-NCR led with a 24% share, followed closely by Chennai at 22%. In Q4 2025 alone, there was a demand for about 10.4 million sq ft of industrial and warehousing space, with Chennai and Pune contributing 56% of this demand.
Demand in 2025 was mainly driven by third-party logistics (3PL) players, constituting 32% of overall leasing activities. Additionally, engineering and e-commerce sectors also saw a notable rise in demand. Vijay Ganesh, Managing Director at Colliers India, highlighted that the last quarter’s strong performance pushed the demand for Grade A industrial and warehousing space to approximately 37 million sq ft, the highest in recent years.
Large deals, particularly by 3PL firms, were significant contributors to the space uptake in 2025. Deals exceeding 200,000 sq ft accounted for 45% of the total demand during the year. Delhi-NCR and Chennai individually recorded over 8 million sq ft of demand, collectively making up more than 45% of the leasing activity.
The markets of Pune and Mumbai each witnessed a space uptake of around 5 million sq ft in 2025. The demand for Grade A warehouses in these key industrial hubs was predominantly fueled by 3PL and engineering companies. Vimal Nadar, National Director and Head of Research at Colliers India, expects these markets to collectively drive 70-80% of industrial and warehousing demand in 2026.
In 2025, there was a new supply of 41.7 million sq ft, marking a 15% increase from the previous year. This surge indicates enhanced developer confidence and a positive outlook for the upcoming year.
